Consents are at their lowest and construction is down — but is it all bad?
The positives in the market still abound. Interest rates are at a new affordable low — BNZ’s stands at 4.99% at time of going to press — land developers will sell you anything and discount and offer are no longer dirty words.
Suppliers are open to ideas to help you get the next project and your staff tend not to leave, taking your knowledge with them.
Good trades are available and on time — we had forgotten what this was like. Even the noise on slow consents seems to have quietened — some are grateful to even process one!
This is the time to prepare for the next upward cycle. Even the New Zealand Herald reported some positive comments recently, and Tony Alexander of BNZ was making positive murmurs.
I have just read an article by Infometrics stating that with the low numbers we are currently building we are creating the next boom — I hope not but more would be good.
All the economists and commentators agree New Zealand does not have an oversupply in homes. In fact, the reverse applies.
Buyers are around, still holding their wallets tight but, by now, you should have a clear point of difference for them to buy off you.
Use the tools you have available, such as the Master Build Guarantee — especially for the overlooked area of alterations and additions. It’s all about the offer of peace of mind and making it easy.
Use the contract documents and apply the Construction Contracts Act where needed as these are for builder and client security.
Update your web details with the RMBF. Are your display homes up to date? And read all the literature — DBH, BRANZ and trade magazines knowledge is power, power to convert the enquiry to real work.
You and your staff need to prepare, so use the courses around your Chamber of Commerce, ACC, Site Safe, Institute of Management, green training and product workshops.
Your local RMB Associations can help too. Capable and trained people will be the backbone of the next few years’ growth.
Even if the current market doubles we are only achieving the average of the past 10 years.
If you can, come to the RMBF annual conference in Marlborough next month. Spend a few days on the business rather than in it.
Get first-hand information on the economy and the opportunities. Mix with others who share your passion for this business and some who have grown in this market.
Remember the RMBF is more than a golf match or a few beers — we care about the larger picture and are regularly addressing a plethora of issues important to each and every one of us.